** Australia's benchmark index .AXJO drags 1.6% to 7,766.3 points, set for its lowest level since August 9, if losses hold

** The index enters correction territory, down 10% from its record high seen on February 14

** All major sectors, except gold, currently trading in red

** Bourse operator ASX ASX.AX falls 3.3% to A$63.26

** Banks .AXFJ slump 1.7% with Commonwealth Bank of Australia CBA.AX dropping close to 2%

** Investor appetite dampened in Australia after local media reported the White House has confirmed no exemptions for the country from U.S. steel and aluminium tariffs

** AXJO down 4.5%, YTD

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))